Friday, September 10, 1971 THE MICHIGAN DAILY Page Sever Friday, September 1 0, 1 97 THE MICHIGAN DAIL"i --- i CHEAT NEW RELEASE H ROM Rogers asks revaluation of yen in U.S.-Japan talks REP11SF-WARN El ""OS. THE MOTHERS "Fillmore East June 1971" (Is this really the dirtiest record ever released?) SPECIA L SPECIAL JOAN IJALiR Y "It Ain't Easy" produced by Rod Stewart and Elton John WASHINGTON P)-Secretary of State William Rogers called on Japan to revalue the yen upward and Tokyo's foreign minister sought an early end to the U.S. import surcharge yes- terday as cabinet officers of the two nations started intensive talks on the world economic crisis. Blunt w o r d s characterized statements before the closed ses- sion though the "close and friendly relationship between our two countries" was empha- sized by Rogers and echoed by Minister Takeo Fukuda. The two-country cabinet meet- ing is an annual affair devoted to discussion rather than deci- sion-making. But with Japan an outstanding target in President Nixon's effort to overcome the U.S. trade deficit, the two-day session opened in the air of urgency reinforced by Nixon's economic address to a joint ses- sion of Congress. A State Department spokes- man noted that the U.S. trade deficit with Japan, running at a $2.8 billion clip this year, out- weighs the total U.S. $1.5 billion deficit worldwide, after figuring in surplus balances. "I will speak directly and candidly," Rogers said in closed session remarks relayed to news- men. "We believe that any country in chronic surplus, as Japan is, cially on items of trade interest to the U.S." Fukuda said "I do not think that our current balance of pay- ments is in basic disequilibrium." While Tokyo understands the difficulties which led Nixon to impose his new economic meas- ares Aug. 15, he said the 10 per cent import surcharge is "a matter of primary concern to us." "Should the surcharge remain in effect for a prolonged period, other countries might adopt counter-measures," leading to a "collapse of the free trade sys- tem" with tragic consequences, he said. "In order to avoid such a sit- uation, it is of the utmost im- portance that the United States remove the surcharge at an early date." Both sides favored a variety of parallel and joint efforts to improve the international eco- nomic picture. Fukuda proposed cooperative programs in developing new commercial aircraft and pollu- tion-free automobiles. Rogers spoke of joint U.S.- Japanese commercial invest- ments in developing countries and collaboration in increasing energy sources. Rogers proposed and Fukuda agreed to carry forward eco- nomic talks at a sub-cabinet level early next year. Rogers FRANK SAYS "RE-REGISTER TO VOTE" PLUS- LIST PRICE Carole King-Tapestry ... . ....... . Rod Stewart-Picture ....... . ... . Jefferson Airplane-Bark. New Riders of Purple Sage ....... . Paul McCartney-RAM .......... Moody Blues-Favor............ Ten Years After............... 5.98 5.98 5.98 4.98 5.98 5.98 5.98 SALE 3.59 3.59 3.59 2.99 3.59 3.59 3.59 OUR SPECIAL BARGAIN SECTION is not to be believed Top-quality Folk, Classics, Jazz, Pop, Spoken, Shows- 1900's of titles at and LESS -Associated Press JOHN CONNALLY AND PAUL McCRACKEN confer yes- terday as they attend a meeting of the Joint United States-Japan Committee on Trade and Economic Affairs. NixonIasks budget cut to reduce U.S. def'icit has an obligation to take the necessary measures-increasing imports, eliminating export in- centives, stimulating capital out- flow, and upvaluing its xchange rate-to bring its global balance of payments into equilibrium." Rogers rated "a major re- alignment of the dollar against the other currencies including the yen" as a "critical first step" toward setting up fair in- ternational money values. Secondly, Rogers asked for elimination of remainning Japa- nese import restrictions, espe- M I I 11 1 IIII OVER 25,000 LP'S, OVER 300 LABELS IN STOCK WATCH FOR SPECIAL SALE ITEMS CHANGING WEEKLY !i1scount records f i Sif#, WASHINGTON (APi-A spending- cut program of S5 billion, slightly larger than earlier estimates, was outlined to Congress yesterday as part of President Nixon's new economic program. The administration has said that the cuts will more than balanoe the tax reducing aspect of. Nixon's proposal. But George Shultz, di- rector of the Office of Manage- ment and Budget confirmed earlier estimates that next year's deficit estimate may run to something like 827 billion or $28 billion. A major reason, Shultz told the House Ways and Means Commit- tee. is that tax collections are like- ly to be $13 billion to $14 billion lower than was estimated in Janu- ary. The administration expects un- employment to drop substantially 1 11 1 1235 S. UNIVERSITY " 300 S. STATE 668-9866 665-3679 " ANN ARBOR, MICH. in the coming months, Shultz add- ed. but it is budgeting about the same amount for unemployment compensation this year as last. The biggest single item in the budget reduction program that Shultz outlined was $1.3 billion re- sulting from Nixon's proposed six- month postponement of federal pay increases. Deferral of his revenue-sharing plan, on which Congress has not acted, would yield another $1.1 billion and similar postponement ' f special revenue-sharing pro- grams, also unenacted so far, was estimated to save $500 million. Other items listed by Shultz in- cluded $800 million from a cut in federal employment; $600 million by postponing the start of welfare reform; $200 million from cuts inI foreign economic assistance pro- grams, and 8100 million from other! actions including a stretchout of water and sewer grant programs. Shultz told the committee the postponement of federal pay in- creases "must, of course, be meas- ured against the sacrifice that we are asking all employes through- out the country to make, and also against the fact that since July! 1969 most federal workers have re- ceived better than a 20 per cent pay increase." Nixon vows end to wage-price freeze after 90-day period (Continued from Page 1) "We cannot turni Without getting into specifics, cannot drop out of Nixon mentioned new legislation with the rest of the he will send to Congress in 1972. remain a great nation He said: ca today is No. 1 in enew proposals economically. Let usr . I shall present nw rpsaswe shall stay No. 1," in both these areas: tax reformw l to create jobs, and new approach- Rep. Wilbur Mills es toward insuring the maximum chairman of the Ways enlistment of America's techno- Committee, now consid logy in meeting the challenges of of the President's em peace," quests, told newsmen hi HOURS: BOTH STORES: MON.-FRI., 9:30-9; SAT., 9:30-6 0 SUNDAYS, Noon-5 I inward, we days will be voluntary and "cre- competition ated further confusion." world, and "The net effect of the Presi- thee- dent's speech could be inflation- resolve that ary", Jackson said. Nixon said. Sen. George McGovern, (D- D-Ark) ,jS.D.), the only announced candi- , (D-ank'date for the 1972 Democratic pre- and Means sidential nomination, said he dering some found Nixon's speech interesting ergency re- but "we really didn't hear much Le would not that was new." dent to an-h. wage-price g a replace- Prof. H. Richard Crane, chair- man of the University's depart- ken his bar- ment of physics, has been elected ls said. "It chairman of tne Governing Board dy under a of the American Institute of Phy ne up with sics (AIP). He succeeds Dr. Ralph A. Saw- Sen. Henry yer who has been chairman of this aid the Pre- board for the past 12 years. BACK-TO- COLLEGE ___ ISALE! ON MAIN ST.-ANN ARBOR FABULOUS SAVINGS on FABULOUS As for his 1971 legislation, Nix- on again urged action this session on revenue sharing, welfare re- form and reorganization of the executive branch. As part of his Aug. 15 program, Nixon had called for delays in putting welfare reform and reve- nue sharing in effect. But he em- phasized this should not delay consideration of the basic legis- lation. The President touched only in- directly on the international as- pects of his economic program, which feature a 10 percent sur- charge on most imports and tem- porary abandonment of the gov- ernment's policy of selling gold at $35 an ounce. have advised the Presi nounce the end of the freeze before developin ment program. "I think it may weak gaining position," Mil will also put everybo lot of pressure to core something.s In similar vein, S Jackson, (D-Wash.), sa ciln~t m~aoj' m i" 'SOVEREIGN' BATH TOWELS I C sident made "a major blunder in The Institute is a federation of announcing an end to the wage- tne leading societies in the field of price freeze, saying it "threw away physics in the U.S., representing an important option." approximately 50,000 scientists in Jackson, a possible contender physics and astronomy, 5,000 stu- for next year's Democratic presi- dents on 420 campuses, as well as dential nomination, said Nixon 120 corporations, institutions, and implied that restraints after 90 laboratories in industry. by MARTEX .44 E regularly 2.75 Only because the colors are discontinued can we offer you this amazing value! Thick and thirsty terry bath towels by famous Martex at a fraction of their regular price. Stock up now for dorms, homes and rooming houses. 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